GIPS2020 Term – Crystallization Period

#9 Crystallization Period

'CRYSTALLIZATION PERIOD: The period over which Performance-Based Fees are considered earned and cannot be reversed under a Clawback.'
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Full Definition

This term is defined in the GIPS 2020 Exposure Draft as “The period over which PERFORMANCE-BASED FEES are considered earned by the FIRM or ASSET OWNER and can no longer be reversed under the terms of a CLAWBACK provision. ”

Key Points about This Term

This is a new term in the Global Investment Performance Standards (GIPS) vocabulary.